Indian Government’s Latest Initiative to Benefit Indian Manufacturers
With an attempt to promote the Make in India Campaign, the Finance Ministry of India issued a notification for a hike in Customs Duty on electronic items on Friday. The move was initiated with the intent to promote the manufacturing of Electronic products in the country and encouraging Indian Manufacturers to boost the production of Indian Goods.
In accordance with the notification, the customs duty on Television sets will hike to 20% from the earlier 10%, with additional duty on LED panels being increased from nil to 7.5%. Foreign manufactured mobiles will now attract a duty of 15%, whereas the customs duty on projectors and monitors is to be doubled to 20%.
With this move, the government expects the foreign players to take initiatives to set up their manufacturing plants within the Indian boundaries.
“I would like to congratulate the Government on their decision to raise customs duty on electronic items including televisions, mobile phones, and water heaters. This move will definitely give a boost to Manufacturing in India which will in-turn push Make in India initiative by our Government. It will encourage foreign players to manufacture products in India instead of importing them since now the prices are expected to go up, especially for televisions.
With this move, Indian manufacturers who make products with complete backward integration will be benefiting greatly. Manufacturers such as Videocon, one of the leading Indian manufacturers with a large workforce will be immensely benefitted because of their strong manufacturing base in the country. Even smaller manufacturers like Viera will be benefitted from this step. Overall this initiative is a great step to boost manufacturing in the country and will also help in generating more employment to the youth. The Make in India project by our government is a great project and to make it successful the government has started implementing policies to form suitable environment conditions,” said Mr. K.S. Raman, Former President, Consumer Electronics & Appliances Manufacturing Association (CEAMA)